India’s jewellery market is undergoing a significant transformation as soaring gold and diamond prices, coupled with cultural shifts driven by Bollywood and social media, steer younger consumers toward colored gemstones. The surge in popularity of stones like tanzanite, paraiba tourmaline, and morganite marks a departure from the country’s longstanding fixation on gold and natural diamonds.

Economic Pressures Drive Change

With gold prices nearing Rs.100,000 ($1,200) per 10 grams and natural diamonds becoming increasingly cost-prohibitive, younger Indian buyers are seeking more affordable luxury alternatives. Colored gemstones, which offer aesthetic appeal with lower gold content requirements (typically 14- or 18-karat vs. the traditional 22-karat), are emerging as attractive options. The financial advantage, coupled with rising income levels and aspirations for unique, expressive adornments, is accelerating the shift.

Market Growth and Outlook

The colored gemstone sector in India generated an estimated Rs.6,900 crore ($825 million) in FY25, up from Rs.6,400 crore ($770 million) the previous year and Rs.5,000 crore ($600 million) in 2020. This represents a strong growth trajectory and reflects broader market dynamics, including a consumer pivot toward value and individuality. Projections suggest this segment could reach $1.9 billion by 2033, driven by a compound annual growth rate (CAGR) of 10.5%.

The Bollywood Effect

Bollywood celebrities and influencers have played a pivotal role in boosting the desirability of colored stones. High-visibility endorsements on Instagram and red carpets are turning once-niche gemstones into mainstream fashion statements. This visibility is not only influencing urban elites but also resonating with aspirational middle-class consumers across tier-2 and tier-3 cities.

Changing Aesthetic Priorities

While traditional favorites like emeralds, sapphires, and rubies still dominate, there’s growing interest in rarer and more exotic stones. Buyers increasingly value emotional and experiential appeal over conventional markers of luxury like carat weight or clarity. Certification agencies such as Gemological Science International report a 50% rise in colored gemstone submissions in FY25, indicating both growing demand and a desire for authentication.

Broad Price Accessibility

A key factor in this trend is the wide price range of colored gemstones. Entry-level options start at around Rs.1,000 ($12) per carat, while ultra-premium stones such as paraiba tourmalines can fetch up to Rs.500,000 ($6,000) per carat. This spectrum accommodates a broad demographic—from budget-conscious young adults to high-net-worth buyers seeking unique investment pieces.

Jaipur’s Strategic Role

Jaipur has become the heart of India’s colored gemstone processing industry. With over 10,000 cutting and polishing units employing more than 300,000 people, the city is critical to the supply chain. Most of the raw stones are imported from African and South American countries and refined in Jaipur before reaching domestic and international markets.

A Post-Pandemic Revival

The industry, which suffered during the COVID-19 pandemic, is now in revival mode. Recovery is fueled by renewed consumer interest, greater digital exposure, and a redefined understanding of luxury that goes beyond precious metals. Colored gemstones are increasingly seen as a convergence of beauty, personalization, and investment potential.